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Oil prices under pressure on demand concerns

The price of crude oil briefly fell to $92.06 a barrel Wednesday after disappointing economic growth figures in Europe, with the 17-country eurozone languishing in its longest recession to date -- but later bounced up for a small gain on the day.

The price of crude oil briefly fell to $92.06 a barrel Wednesday after disappointing economic growth figures in Europe, with the 17-country eurozone languishing in its longest recession to date -- but later bounced up for a small gain on the day.

It ended up 13 cents for the day to $94.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract dropped 96 cents to close at $94.21 a barrel on the Nymex on Tuesday.

Less than a week ago, the price of crude oil traded above $96.30 a barrel, 4% above Thursday's lows.

New figures released Wednesday showed the eurozone's economy continued to contract in the first quarter, keeping it in recession for a sixth consecutive quarter. Although Germany avoided recession, its 0.1% quarterly growth was weak, while France fell into recession. And a report in the U.S. showed factories cut back sharply on production in April, suggesting economic growth may be slowing this spring.

That news initially overshadowed the latest data from the Energy Department showing that oil supplies declined unexpectedly last week.

Crude supplies declined by 600,000 barrels, or 0.2%, to 394.9 million barrels, in the week ended May 10. Analysts expected an increase of 300,000 barrels. Still, demand for gasoline and distillates such as diesel remain below year-ago levels.

Oil prices have also been under pressure since the International Energy Agency on Tuesday raised its forecast for U.S. oil production while cutting its prediction for global crude demand.

Meanwhile, traders were monitoring news that the EU has launched an investigation into possible price-fixing on the oil markets. Three oil companies, Britain's BP, Royal Dutch Shell and Norway's Statoil, as well as Platts, a division of McGraw Hill Financial which compiles prices for energy markets, confirmed they were being investigated.

The EU, which did not name the targets of its investigation, said oil companies "may have colluded in reporting distorted prices."

"Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers," the EU said.